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19/07/2013
Sports Direct Staff Cash On Company's Success
Staff at retailer Sports Direct are to share in windfall profits with six bonus payouts.
In the past year, the company's profits have grown by 40% to more than £200 million. Some 2,000 staff will now receive bonus payments worth £100,000 each.
The UK's biggest sports retailer set up its unique bonus scheme in 2009 and it applies to all full-time staff, from the stockroom to the boardroom, who have been with the company for one year, and will stay for a further four years.
Four years ago all full-time staff who had been with the company since 2008 were promised free shares if profit targets were hit in 2009. When that target was hit they were handed a 25% bonus on their base salary, paid in shares worth £1 each. Those shares soared in value, and when a first 25% tranche of free shares were awarded last year, someone earning £20,000 a year almost doubled their take-home pay with shares worth £17,500.
While impressive, that payout was a mere pittance compared with the huge windfall that follows Thursday's results. The same staff member earning £20,000 will now get 12,000 shares worth a further £75,000.
The lucky 2,000 are now free to sell the shares – and Sports Direct has even provided a free stockbroking service to help them cash in.
(MH)
In the past year, the company's profits have grown by 40% to more than £200 million. Some 2,000 staff will now receive bonus payments worth £100,000 each.
The UK's biggest sports retailer set up its unique bonus scheme in 2009 and it applies to all full-time staff, from the stockroom to the boardroom, who have been with the company for one year, and will stay for a further four years.
Four years ago all full-time staff who had been with the company since 2008 were promised free shares if profit targets were hit in 2009. When that target was hit they were handed a 25% bonus on their base salary, paid in shares worth £1 each. Those shares soared in value, and when a first 25% tranche of free shares were awarded last year, someone earning £20,000 a year almost doubled their take-home pay with shares worth £17,500.
While impressive, that payout was a mere pittance compared with the huge windfall that follows Thursday's results. The same staff member earning £20,000 will now get 12,000 shares worth a further £75,000.
The lucky 2,000 are now free to sell the shares – and Sports Direct has even provided a free stockbroking service to help them cash in.
(MH)
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